Retailers should prepare for a polarisation of spend this Valentine’s Day
Leading creative, retail and shopper marketing agency Savvy, has today launched a new research report that suggests shoppers plan to spend more this Valentine’s Day. The data also suggests that retailers should also be prepared for a polarisation of spend in a market characterised by trade-up opportunities at one end, and a scaled up offer from discounters at the other.
· Who will be celebrating the event?
o Just under two-fifths of shoppers are planning to celebrate Valentine’s Day this year.
o 39 percent of females plan to mark the occasion versus 36 percent of men.
· Of the shoppers planning to celebrate the event:
o 54 percent agreed that Valentine’s day was a special day and 44 percent were looking forward to it.
o In terms of spending more to make the day special, 49 percent of shoppers were happy to do so.
o Trading up – 33 percent of shoppers said they tend to trade up to buy more expensive food and drinks on the day.
o 27 percent of shoppers said that they expect to spend more on the event this year than in 2014.
o Based on what shoppers have said they plan to buy this year, the research estimates the total value of Valentine’s Day to retailers at £617m in 2015.
· What can we expect to receive this year?
o There are few surprises in shoppers’ wish lists for Valentine’s gifts this year, with cards, a restaurant meal, chocolates, home cooked meal, flowers and luxury goods (incl. perfume) topping the table.
o The gift men plan to purchase the most is a shop-bought card (41 percent) followed by a restaurant meal (36 percent). Eight percent didn’t plan to buy anything at all.
o Women plan to purchase cards from a shop came top (44 percent) followed by chocolates (33 percent). Six percent weren’t planning to buy anything at all.
o Outside of retail goods, 30 percent of all respondents would like to be taken out for a meal at a restaurant and 18 percent had a romantic getaway on their wish lists.
Alastair Lockhart, Insight Director at Savvy comments: “Outside of Christmas and Easter, Valentine’s Day is one of the biggest trading events for retailers and it seems that the improvements in consumer confidence we’ve seen during the past year are set to translate into higher spending, with just over a quarter of shoppers telling us they plan to spend a little extra this year.”
He continued: “Our analysis does however also suggest a shift in spending patterns this year. At the top end, we anticipate more trading up this year – a great opportunity for retailers – particularly in home cooked meals and flowers.
At the lower end, discounters and pound shops are set to enjoy significant sales uplifts. These retailers have rolled out substantial new space in the past year – that alone will increase their reach. But more importantly, they are becoming increasingly sophisticated in their execution of events instore. More appealing product and creative use of instore display should help entice shoppers to buy and spend that little extra. Pound stores in particular are ideally placed to benefit from the many shoppers who see Valentine’s Day more as a bit of fun.”